Multi-Color’s Bankruptcy Venue Challenged by Justice Department

Label design and printing company Multi-Color Corp.'s bankruptcy should be dismissed or transferred to another venue because it was artificially manufactured to be filed in New Jersey, a Justice Department bankruptcy watchdog said.

Multi-Color engaged in “gamesmanship” to bring its Chapter 11 in the Garden State, the US Trustee told the US Bankruptcy Court for the District of New Jersey, noting that none of the company’s subsidiaries, physical operations, or headquarters are located there.

The US Trustee asked to dismiss the bankruptcy of Multi-Color subsidiary MCC-Norwood LLC, the company’s affiliate and hook to New Jersey for all of its bankrupt ...